M/S SAMI DIRECT MARKETING PVT LTD vs. THE ASST. COMMISSIONER OF INCOME TAX

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ITA No. 31 of 2021

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF MARCH, 2023 PRESENT THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR. JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 31 OF 2021 BETWEEN:

M/S. SAMI DIRECT MARKETING PVT LTD PAN: AAOCS 4393 P NO.30 AND 31, 5TH CROSS 5TH BLOCK, KORAMANGALA BENGALURU-560 034 (REPRESENTED BY ITS DIRECTOR SRI. RAJESH GOPALAN KUMAR S/O SRI. GOPALAN KUTTIKATU SHANKARAN NAIR AGED ABOUT 51 YEARS) …APPELLANT

(BY SHRI. K.K. CHYTHANYA SENIOR ADVOCATE FOR SHRI. TATA KRISHNA, ADVOCATE)

AND:

THE ASST. COMMISSIONER OF INCOME TAX CIRCLE-6 (1)(1), ROOM NO.753 BMTC BUILDING, 7TH FLOOR KORAMANGALA 6TH BLOCK BENGALURU-560 095 …RESPONDENT

(BY SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE IMPUGNED ORDER OF THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU ‘B’ BENCH BEARING IN ITA NOS.1191 AND

Digitally signed by ANUSHA V Location: HIGH COURT OF KARNATAKA

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ITA No. 31 of 2021

1192/BANG/2018 DATED 07.02.2020 FOR THE AYS 2013-2014 AND 2014-2015 AS ENCLOSED IN ANNEXURE-A AND ALLOW THE APPEAL AND SET ASIDE THE IMPUGNED ORDER OF THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU ‘B‘ BENCH BEARING IN MP NOS.90 & 91/BANG/2020 DATED 25.09.2020 FOR THE ASSESSMENT YEARS 2013-2014 AND 2014-2015 AS ENCLOSED IN ANNEXURE-B AND ETC.

THIS ITA, COMING ON FOR FINAL HEARING, THIS DAY, P.S.DINESH KUMAR, J., DELIVERED THE FOLLOWING: JUDGMENT

This appeal by the assessee directed against order dated February 7, 2020 in ITAs No.1191 & 1192/Bang/2018 for the A.Y.2013-14 passed by the ITAT1, Bengaluru, has been admitted to consider following questions of law; “1. Whether on the facts and circumstances of the case, the Tribunal is right in law in denying depreciation on trademarks? 2. Whether on the facts and circumstances of the case, the Tribunal is right in law in denying depreciation when the lower authorities have not invoked Explanation 3 to section 43 (1)? 3. Whether on the facts and circumstances of the case, the Tribunal is right in law in denying depreciation on trademarks bought in PY 2011-12 for the impugned years contrary to Explanation 5 to section 32(1)(ii) and principle of consistency? 4. Whether on the facts and circumstances of the case, the Tribunal is right in law in refusing to consider the valuation report as evidence before it rendering its action perverse?”

1 Income Tax Appellate Tribunal

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ITA No. 31 of 2021

(i) Appeal is allowed;

(ii) Order dated 07.02.2020 in ITAs No.1191 & 1192/Bang/2018 passed by the ITAT, Bengaluru is set-aside;

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ITA No. 31 of 2021

(iii) The matter is remitted to the file of the ITAT with a direction to consider the valuation report subject to revenue's right to contest its correctness; (iv) Consequently, questions No.1 to 3 do not arise for consideration; (v) All contentions of the parties are kept open for the ITAT's consideration; and (vi) Since, the matter has been remitted, questions of law do not require any answer and accordingly, they are not answered.

No costs.

Sd/- JUDGE

Sd/- JUDGE

AV List No.: 1 Sl No.: 44